GM expects to earn up to $2.1B as IPO approaches

DETROIT: General Motors Co. said Wednesday that it expects to earn up to $2.1 billion when it reports third-quarter results next week. The forecast came as GM announced its stock will be priced from $26 to $29 per share in an initial public stock offering.

No date for the IPO was revealed Wednesday, but people briefed on the plan have said it could be around Nov. 18. The sale will allow GM's largest owner, the US government, to reduce its stake in the company from 61 per cent to around 35 per cent.

The IPO is expected to raise about $10 billion, with $7 billion going to the U.S. Treasury and $3 billion to GM's other owners, the Canadian and Ontario governments, a union health care trust and former GM bondholders.

GM also said its owners have authorized it to split company shares three-for-one ahead of the sale.

GM now expects to report net income of $1.9 billion to $2.1 billion when it announces results on Nov. 10. The forecast is higher than the $1.6 billion the company earned in the second quarter.